29.Jun .2022 15:00

Aviation Fuel Price Presumably Will Reduce From July - Georgian Petroleum

Aviation Fuel Price Presumably Will Reduce From July - Georgian Petroleum
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The International Air Transport Association (IATA) reports, the price of aviation fuel is down on the global market. In particular, the price of aviation fuel is reduced by 2.5% compared to the previous week and its average price is almost USD 173 per barrel.

Fuel is more expensive in the European region, which price equals to USD 178. The price of aviation fuel has risen sharply in recent months, and annual growth has even exceeded 100%.

Giorgi Andghuladze, Commercial Director of Georgian Petroleum, an importer of aviation oil, expects the price to be reduced from July.

"As you know, late in May and early in June of this year, there was a significant increase in the aviation fuel index, as a result of which prices increased by about 14%. As a rule, price fluctuation is followed by stabilization and small adjustments. This time we are dealing with such a case, but the reduction is not fundamental. However, it will definitely affect the Georgian aviation market. Due to the specifics of our business, prices are updated twice a month and it is automatically linked to the average index of the international oil market. Therefore, from July 1, the price of aviation fuel is expected to decrease by 1% to 2.5%, "- said Andguladze.

According to Giorgi Andghuladze, the price of one ton of aviation fuel on the Georgian market is USD 1,500. At the same time, the fuel, which has the largest share in the price of the airline ticket, is exempt from excise tax and VAT in Georgia.